YAHOO [BRIEFING.COM]: A general lack of leadership left stocks to
slide into negative territory for the second straight session, but a late
bounce helped the major averages trim their losses.
Stocks struggled to establish a clear direction in morning trade.
An absence of leadership left the major averages to roll into the red to trade
with losses of about 1%. A rebound began to take shape in the final hour, when
the S&P 500 found support at the 1370 line, which marks the weekly closing
low that was set on Monday. Although stocks settled comfortably above session
lows, broad losses were still booked.
Tech stocks were hit the hardest today. The sector suffered a 1.3%
loss. Qualcomm (QCOM
62.56, -4.42) was one of its poorest performers as market participants
responded in a decidedly negative manner to the firm's underwhelming forecast,
which overshadowed an upside earnings surprise for the latest quarter.
Ostensibly lackluster earnings results from both Morgan Stanley (MS 18.07, +0.41) and Bank of
Stronger-than-expected quarterly results from Verizon (VZ 38.15, +0.49) helped the
integrated Telecom play prop up the rest of Telecom. That helped the sector
score a 0.2% gain, although it had been up more sharply at midday.
Health Care stocks also scored a 0.2% gain. Human Genome Sciences (HGSI 14.17,
+7.00) nearly doubled its share price and brought attention to
biopharmaceutical plays after the company announced it rejected an unsolicited
bid from GlaxoSmithKline
(GSK 46.69, +0.32) for $13.00 per share in order to explore alternatives.
Online retailer eBay (EBAY
40.62, +4.75) garnered strong buying interest on the back of its quarterly
report. The stock surged to a multi-year high as a result. Still, the Consumer
Discretionary sector suffered a 0.9% loss today. It was the only major sector
to book a gain in the prior session.
The dollar was flat at day's end, but that was only after it
surrendered an early gain that came in response to a retreat by the euro. The
euro's downturn came after it had violated a key technical support line
following news of satisfactory demand at a debt auction held by both
Data today didn't do anything to bolster confidence in stocks. The
latest initial jobless claims tally totaled 386,000, which is little changed
from the prior week, but greater than the 375,000 claims that had been
generally expected.
Additionally, the
Existing home sales also proved disappointing. The pace of sales
eased down to an annualized rate of 4.48 million units in March from a pace of
4.60 million units in the prior month. An annualized clip closer to 4.62
million units had been broadly anticipated.
Leading Indicators for March were somewhat of a bright spot, but
not terribly so. They increased by 0.3%, which isn't much better than the 0.2%
increase that had been generally forecasted.
Crude oil experienced considerable volatility today. The energy
component set session lows of $102.17 per barrel in the final 30 minutes of
floor trade, but a late pop lifted it to $102.82 per barrel, trimming its loss
to just 0.3%. Although it had no real influence over oil's direction today, it
is worth noting that the House approved the Keystone XL Pipeline project after
pit trade had closed yesterday afternoon. Natural gas prices briefly poked into
positive territory following bullish inventory data that showed a build of 25 bcf when a build of 30 bcf had
been broadly anticipated, but from there prices descended steadily as trade
progressed. Natural gas contracts closed the floor session with a 2.6% loss at
a new 10-year low of $1.90 per MMBtu.
Trade among precious metals was largely driven by the dollar's
movement. Both gold and silver gained upward momentum in morning pit trade,
reaching session highs of $1654.90 per ounce and $32.01 per ounce,
respectively. However, the metals were not able to maintain the move once
pressure on the dollar began to ease. Gold gave up most of its gain to settle
floor trade at $1641.60 per ounce, up just 0.1% for the day. Silver settled
with a 0.9% gain at $31.76 per ounce.
Advancing Sectors:
Health Care +0.2%, Telecom +0.2%
Declining Sectors:
Utilities -0.3%, Energy -0.3%, Consumer Staples -0.3%, Materials -0.3%,
Financials -0.5%, Consumer Discretionary -0.9%, Industrials -1.0%, Tech
-1.0%DJ30 -68.65 NASDAQ -23.89 NQ100 -1.1% R2K -0.6% SP400 -0.4% SP500 -8.22
NASDAQ Adv/Vol/Dec 927/1.98 bln/1548 NYSE Adv/Vol/Dec 1228/823 mln/1762